Kathmandu: Reliance Spinning Mills Limited has announced its plan to issue shares through the book building process, targeting eligible institutional investors from Magh 10 onward. The company is set to bring in a total of NPR 1 billion 90 crores at a price of NPR 100 per share, accounting for 10.14% of its issued capital.

The company, approved for the issuance, will offer 19,26,600 shares at a face value of NPR 100 per share in the book building process. The sale includes a maximum of 40% or 7,70,640 shares offered within a price range of NPR 608 to NPR 912.

In a bid to encourage participation from institutional investors in the Nepse trading system, the company, along with its appointed issue manager Global IME Capital Limited, has opened the floor for potential investors to submit application forms at the registered office of Nepal Stock Exchange (NEPSE) on Shantimarga, Bhadrakali.

The company’s securities have been rated by Care Ratings Nepal, and it received a rating of Care NP Single A (Issuer) indicating that it has enough capacity to service its financial obligations safely and timely.

Reliance Spinning Mills, a prominent player in the textile industry, is one of the largest employers in the country, contributing significantly to employment in the spinning industry. The company exports 70% to 75% of its production to various countries, including India, Turkey, Vietnam, and the UK.

Pawan Kumar Golyan serves as the Chairman, while Akshay Golyan holds the position of Managing Director. The main industry of the company, Mill ‘A,’ is located in Khanar, SunSari, and its branch industry, Mill ‘B,’ is situated in Duhabi, SunSari. The company’s ordinary share tenure for refund is 6.88 years, while the disinvestment period for the Discounted Method is 10.74 years.